December 15
The real estate sales price in new satellite townships on Yangon City’s outskirts jumped two-fold compared to those of suburban areas, realtors from new satellite townships told The Global New Light of Myanmar (GNLM).
The property prices in the new four townships (Dagon Myothit (North, South, East, and Seikkan) doubled amidst Kyat depreciation in the forex market. The buyers prefer new vibrant townships with good transport, industrial parks, and a bustling market.
Why are house prices in satellite townships skyrocketing?
“The real estate values in those four townships are rocketing compared to those in South Okkalapa, North Okkalapa, Thingangyun, Thakayta, and Thuwunna because of vibrant neighbourhoods, better transportation, and bustling markets. The property market in those townships boomed this year as some investors eyed the location, and Kyat weakened against the hard currencies. Both the rent and sale prices doubled in H2 this year,” Daw Thet Mar Win, a realtor, told the GNLM.
The market values in the suburban areas are weak, she elaborated.
“During the establishment of a new township (North Dagon), a two-storey wooden house in a 40 by 60 feet plot in Ward 35 was worth only K400,000-K500,000. Now, the value has surged to more than K400 million. Bustling townships with development and good transport boosted sales prices. However, the real estate value in South Okkalapa township on the other side of Ngamoeyeik Creek is still lower than that of the new township. The 30×60 feet house in community housing is not priced higher than K500 million. With this price, we can only buy a 20 by 60 feet house in North Dagon,” U Aung Naing Win, a realtor, said.
The mass movement to urban from rural areas and relocation of posh regions (Bahan, Shwetaunggya, Sangyoung, and Mayangon) to new townships to take a profit from property made the market thrive in the previous years.
The property prices in those new satellite townships doubled in a few years.
New township property market booming
“Of four townships, North Dagon has a good neighbourhood. The developers bought a plot of land worth K70 million and built a house with creative exterior and interior designs by spending K50-K100 million. That new design house is put for sale at K300-K400 million. Amidst the shaky currency market, the value rose to over K500 million.
Low-income people and blue-collar workers are primarily seen in Dagon Myothit (South) and Dagon Myothit (Seikkan) townships, where industrial zones are located. Dagon (South) also drew the attention of the investors this year, U Aung Naing Win said.
Yangon Benchmark Report for property is released every year by an institution concerned. However, the transaction price is higher than the benchmark rates. Following the property market shaking up in new townships, the townships connected to those areas also see bustling trade this year.
Weakening Kyat, soaring real estate prices
“There are many vacant plots of land beside the road next to one new township. Those land plots are also highly demanded, even without having an ownership grant landslip. The land in the Sitpin area was valued at K8 million to K10 million per plot. This year, the price doubled. The buyers put the fence around the land. Some investors build so-called houses on those land,” Ko Thein Soe, a realtor, told the GNLM.
The population density, better infrastructure, and development of industrial zones significantly elevated the real estate prices in those four Dagon townships this year.
“The investors eye hard assets like property while the Kyat value falters in the forex market. Before April this year, a 20×60-foot plot of land at Ward 18 in South Dagon Township climbed to K130-K150 million in late 2023. When investors eyed the property market in new townships in late May, the price rise persisted. Most people like to keep haven assets like real estate during times of market turbulence,” the GNLM quoted Ko Thurein from Ward 18 of Dagon Myothit (South) Township as saying.
Translated by EM
